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You’ve served and earned your VA disability compensation and deserve to keep every penny. But in some cases, the law allows another person to be paid a portion of your benefits.
This is called VA apportionment.
Keep reading to learn more about the VA apportionment process, who is eligible to receive apportionment on your behalf, and why.
Table of Contents
What is VA Apportionment?
In short, apportionment is when another person is paid a portion of your VA disability compensation. The VA will take a percentage of your monthly payments and send a part of your check directly to the other party. You’ll still receive a portion of your pay, but your pay will be reduced by the amount sent to the other party.
VA apportionment usually comes from a disagreement between a veteran and another party, such as an estranged spouse, about how disability compensation should be divided. In some cases, the VA will decide that apportionment is in the best interest of you and your family.
Who is Eligible for VA Apportionment?
If you’re one of the following eligible individuals, you can apply for VA apportionment:
- An estranged spouse
- Children living with an estranged or divorced spouse
- Children who aren’t living with you and are unable to provide for themselves financially
- Dependent parents
VA Apportionment Examples
There are a few different circumstances where apportionment is used. Unfortunately, many of these scenarios are negative. However, there are a few positive examples of when apportionment can be used to benefit a veteran and their family.
Examples of when VA apportionment is typically granted include:
- You’re legally responsible for someone but aren’t supporting them financially
- You’re not staying current with alimony or child support
- You’re not capable of caring for yourself (in the hospital or incompetent), you don’t have a fiduciary, and your benefits are apportioned to a spouse, children, or dependent parents
- You pass away, and your survivor benefits are given to your children who aren’t living with a spouse receiving Dependency Indemnity Compensation (DIC)
- You’re incarcerated and still want your spouse to receive full monthly support instead of only 10% of your disability payment
Note that VA disability compensation isn’t considered marital property, which means that your ex-spouse isn’t federally entitled to any of your VA benefits in a divorce. However, some states consider VA benefits when looking at child support and alimony. Knowing the rules in your state is crucial to understanding how your situation impacts apportionment.
At the end of the day, the VA doesn’t want to take away a veteran’s livelihood. This means that when someone files for VA apportionment, the VA looks at the situation surrounding the veteran.
The VA uses the term “reasonable and necessary” to decide on if a veteran’s VA disability pay should be apportioned or not. If the VA determines that the veteran needs the money to survive, it’s unlikely that the apportionment will be approved.
Other scenarios that make applicants ineligible for apportionment include:
- A (remarried) ex-spouse who is applying for benefits
- An estranged spouse living with someone else openly where the veteran is no longer financially supporting the spouse
- A dependent child adopted by someone else
- A dependent child serving in the military
How to File for VA Apportionment
You must file for apportionment VA benefits if you’re looking to receive VA apportionment for a veteran’s disability compensation. The VA will not automatically grant you apportionment.
To file for VA apportionment, you’ll need to complete the VA apportionment form: VA Form 21-0788. This form includes financial information, including monthly income, net worth, and monthly living expenses for the veteran and the person claiming apportionment. Gathering this information now will help you complete this form.
What Happens After Filing for VA Apportionment?
When filing for VA apportionment, the process used to decide on your claim is very similar to filing for a traditional VA claim.
The VA will process the claim and usually request more evidence. Usually, the VA will request that the veteran and applicant submit financial statements to help make a decision. The VA wants to understand the finances of both parties to determine that apportioning a veteran’s disability check is necessary.
When the VA comes to a decision, the request for apportionment will either be denied or granted. If granted, the VA will also decide how much of the monthly pay is apportioned.
After the decision comes back, the applicant and veteran can both appeal the decision if they disagree.
If apportionment is granted, veterans can also file for a hardship reduction with the VA if the financial commitment is causing undue hardship. The VA will review the case and decide if the apportionment should be reduced or stopped altogether.
How Much Will Disability Pay be Apportioned?
Typically, the VA will apportion between 20% to 50% of a veteran’s disability pay when the applicant for the apportionment is applying due to financial hardship. Keep in mind that these decisions are not made lightly, and the VA typically takes up to a year to make a decision.
Applying for VA apportionment can be complicated, so it’s essential to understand all the rules and requirements before applying. If you have VA apportionment questions, you can learn more by reading the VA’s claims manual on apportionment.
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Most veterans are underrated for their disabilities and therefore not getting the compensation they’re due. At VA Claims Insider, we help you understand and take control of the claims process, so you can get the rating and compensation you’re owed by law. Our process takes the guesswork out of filing a VA disability claim and supports you every step of the way in building a fully-developed claim (FDC). If you’ve filed your VA disability claim and have been denied or have received a low rating—or you’re unsure how to get started—reach out to us! Take advantage of a VA Claim Discovery Call. Learn what you’ve been missing—so you can FINALLY get the disability rating and compensation YOU DESERVE!
About the Author
Brian Reese
Brian Reese is a world-renowned VA disability benefits expert and the #1 bestselling author of VA Claim Secrets and You Deserve It. Motivated by his own frustration with the VA claim process, Brian founded VA Claims Insider to help disabled veterans secure their VA disability compensation faster, regardless of their past struggles with the VA. Since 2013, he has positively impacted the lives of over 10 million military, veterans, and their families.
A former active-duty Air Force officer, Brian has extensive experience leading diverse teams in challenging international environments, including a combat tour in Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from the United States Air Force Academy and earned his MBA from Oklahoma State University’s Spears School of Business, where he was a National Honor Scholar, ranking in the top 1% of his class.
